Invest in Humanity - Initial Public Offering - Sarvodaya Development Finance Ltd.

Initial Public Offering Invest in Humanity

Financial Advisors and Managers to the Issue

October, 2021

At a Glance • Sarvodaya Development Finance Limited (SDF) is a licensed finance company formed in 2010 as the economic arm of the Sarvodaya Movement (est. 1958), one of the oldest NGOs in Sri Lanka • With a track record spanning over 6 decades, Sarvodaya Movement uplifts and empowers rural masses all across the nation, has a strong brand presence and is a trusted name among Sri Lankans

• Capitalizing on the unique Sarvodaya brand recognition and widespread network of solid relationships, today SDF has transformed into a young, tech-savvy financial services specialist providing a diverse product range

51

486

Customer Service Centers / Branches

Employees

135,093

LKR 9 Bn +

Customers

Total Assets

2

IPO Highlights Key Facts

Transaction Structure

IPO Price

LKR 22/-

Number of Shares

c. 45Mn Ordinary Voting Shares

IPO Size

LKR 1 Bn

Stake Offered

30.38%

IPO Underwriting Market Capitalisation IPO Opening Date

Number of Shares on Offer

Issue Amount (LKR)

LKR 250 Mn

Initial Tranche

Green Shoe Option

22,727,273

22,727,273

500 Mn

500 Mn

•

50% of Initial Tranche

LKR 3.29 Bn November 23, 2021

Note: Figures above are based on the assumption of full subscription of the IPO

•

Fulfilling regulatory core capital requirement Part-financing growth in the loan portfolio

IPO Objectives

3

Unique Opportunity to Empower Sri Lanka’s Village Entrepreneurs Trust and Loyalty in the Sarvodaya Brand

Rural Economy Focused Diverse Product Portfolio

Innovative Digital Initiatives

Attractive Valuations and Consistent Returns

Ability to leverage on the 60 year relationship between the Sarvodaya Movement and the masses

Customised lending to village communities

Boosting accessibility and rural market penetration through the SDF Smart Village App

Outpacing the sector throughout its history with NIMs in excess of 10%

Utilising the 5,000+ grassroot Sarvodaya Society network for deployment

Serving and educating the Under Financed and Under Served

Partnerships with leading digital solution providers such as mCash, LankaPay and Pay&Go

ROE growing to over 20% driven by 6Y forecast loan book CAGR of 25%

Achieving higher credit quality via community based lending

78% of loan portfolio originating outside the Western Province

Unlocking cost efficiencies by deploying front and back end fintech solutions

Offer price at a discounted PBV of 1.03x following the recent Share Issue at 1.24x

4

Sarvodaya Movement

THE SARVODAYA MOVEMENT One of the Oldest NGOs in Sri Lanka ▪ The Sarvodaya Movement, founded by Dr. A. T Ariyaratne is the largest development promoting organization in Sri Lanka, helping more than 15,000 villages over the past 60+ years.

Driving the Philosophy of the Sarvodaya Movement through SDF’s Activities Dr. A T Ariyaratne Born November 5, 1931, Dr. Ahangamage Tudor Ariyaratne is the founder of the Sarvodaya Shramadana Movement of Sri Lanka. A former high school teacher at Nalanda College, he conducted the first shramadana work camp in 1958, which eventually led to the establishment of the Sarvodaya Movement.

Dr. A T Ariyaratne has been nominated for the prestigious Nobel Peace Prize three times for his exceptional contribution to peace and harmony. He is also a recipient of the highest Sri Lankan award, SRILANKABHIMANYA and Gandhi Peace Award from the Government of India.

“Uplift and empower the most disadvantaged people” “Ensure Total Awakening and Well-being of All beings”

6

THE SARVODAYA MOVEMENT At a Glance

60+ Years of Service to Humanity

• LKR 6.5 Bn worth of community projects during the last 10 years [official audit reports]

•

Services to 15,000 villages

over

• 50,000 women trained in self-employment

• 600 community projects in the Plantation Sector

• Over 5,000 registered Community-based Organizations under the patronage of Sarvodaya

• 250,000 volunteer community development projects, including 10,000 village roads, 4,500 pre-schools, 10,700 water projects

• 3,000 houses and 15,000 water and sanitation facilities to those affected by war

• 15,000 children served in Sarvodaya Suwasetha Homes

• 400,000 including women and youth trained in enterprise development

• Serves all ethnic and religious communities across the country

7

SARVODAYA ECO SYSTEM Empowering Humanity Individuals obtain membership and pay subscriptions to the local society

SDF provides facilities to village level societies and related individuals, businesses etc.

The community effect drives prompt repayment and future referrals

SARVODAYA Movement

Village level co-operatives are opened following awareness sessions and on a needs basis

(Apex body of SARVODAYA)

This includes over 5,000 Sarvodaya Shramadana Societies

▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪

Supported by many Sarvodaya Units Sarvodaya Higher Learning Institute Sarvodaya Suwasetha Sewa Society Sarvodaya Vishvanikethan Peace Center Sarvodaya Shanthi Sena – The Youth Peace Brigade Sarvodaya Trust Fund A.T. Ariyaratne Charitable Trust Sarvodaya National Sanga Congress Samodaya Seva Sarvodaya Women’s Movement Sarvodaya Fusion – ICT4D Sarvodaya Economic Enterprise Development Services Sarvodaya Rural Technical Services and Sarvo-tech PVT Ltd

The Sarvodaya Movement is led by Lanka Jathika Sarvodaya Shramadana Sangamaya (LJSSS)

8

Leveraging on Sarvodaya’s Reach to Expand its Coverage STRONG BRAND RECOGNITION SDF is able to capitalize on the unique Sarvodaya brand recognition and widespread network of strong relationships which inspire:

Trust

Gratitude

Loyalty

5,000+ Legally Independent Village Societies

26 District Centers

10

Captive customer base for SDF

500 Community Centers

1,200

Development Education Centers

Preschools

3

12

Peace Resource Centers

Suwasetha Children & Adult Care Homes

9

The Company

Shareholding Structure Prior Shareholding Structure

Current Shareholding Structure

Post IPO Shareholding Structure*

52%

20%

30%

36%

13%

80%

25%

35%

Sarvodaya Economic Enterprises

Development Services (Guarantee) Limited Gentosha Total Asset Consulting Inc., Japan

22% Sarvodaya Societies 13% Other Shareholders

• •

9%

Post IPO public float of 45% Other shareholders will be locked in for 6 months post listing

Recent Share Issuance Investors IPO Investors *Assuming full subscription of the IPO and that no subscription will be made by existing shareholders via the IPO

Please refer Annexure for Top 20 Shareholders 11

A Brief History of Sarvodaya Development Finance

• SEEDS incorporated as the financial arm of the Sarvodaya Movement

• Licensed as a fully fledged NBFI by the CBSL

1984

• Introduced Western Union

2010 • SDF incorporated to take over as the formal financial arm of the Sarvodaya Movement

• LKR 806 Mn raised via a Share Issuance

• Introduced mCash

2013

• Named the Fastest Growing Development Finance Company in Sri Lanka by Global Banking and Finance Review 2021

2021

2017

2015 • Acquired 76% of George Steuart Finance PLC. The same was sold in 2016

2019 • Shifted Head Colombo

Office

to

• Installed first ATM • Renamed to Sarvodaya Development Finance Limited to demonstrate its values based on the Sarvodaya Movement

• Connected to all ATMs across Sri Lanka via Lankapay

12

BOARD OF DIRECTORS

Expert Leadership

MR. CHANNA DE SILVA Chairman – Non Executive / Independent FCMA – UK, FCCA – UK Master’s Degrees: Harvard University, Melbourne University Bachelor’s degree: University of Colombo MR. MASAYOSHI YAMASHITA Non Executive / Non Independent President and CEO Gentosha Total Asset Consulting Inc. Bachelor’s degree, Department of Political Science Hosei University (Japan)

MR. CHAMINDHA RAJAKARUNA Non Executive / Non Independent Executive Director, Sarvodaya Shramadana Movement MSc. Water Resources Engineering, Belgium MSc. Resources Engineering, Germany

DR. JANAKI KURUPPU Non Executive / Independent 27 years of professional experience PhD from the University of Colombo

MS. SHEHARA DE SILVA Non Executive / Independent CPM (Asia Pacific), CIM, UK (Dip), ICS, UK Diploma in Market Research On the Board of Keells Foods PLC, The Biomass Group, The Neelan Thiruchelvan Trust, Informatics Institute of Technology and The Music Project

MR. SENTHI NANDHANAN SENTHILVERL Non-Executive/ Non-Independent CEO at Dollar Corporation 18 years of corporate experience MBA University of Southern Queensland, Australia

MR. DAMMIKA GANEGAMA Non-Executive/ Independent An entrepreneur with over 20 years of experience in the tech industry with experience in program management, business consultancy, setting up operations, partnerships and ventures.

MR. CHRISTOPHER AMRIT CANAGARETNA Non Executive / Independent Vice President – Business Banking, Amana Bank PLC Over 35 years of international experience specializing in retail & corporate financing including Islamic financing.

MR. SUNIL DE SILVA Non-Executive / Independent Professional Banker with over 41 years of experience in the areas of Corporate & Retail Banking, Micro Finance, General Banking, Credit Management and Recoveries.

13

A Dynamic Team Lead by Industry Experts:

Extensively Experienced Senior Management Mr. Piyal Salwathura

Assistant General Manager – HR

Mr. Ranapriya Fernando

Head Of Credit

Mr. Mahesh Jayasanka

Chief Manager – Finance

Mr. Kularuwan Gamage

Chief Manager - Operations

Mr. Chandana Bandara

Head Of Internal Audit

Mr. Dilshan Dissanayake

Head Of IT

Mr. Kelum Thilakerathne

Head Of Leasing

Mr. Prabath Rangajeewa

Head Of Gold Loan

Ms. Anusha Fernando

Head Of Legal

MR. NILANTHA JAYANETTI Chief Executive Officer

Mr. Darshana Perera

Senior Manager - Recovery

Mr. Nilantha Jayanetti joined as the Chief Executive Officer of Sarvodaya Development Finance Limited (SDF) on 1st November 2018

Mr. Yenuka Geemal

Senior Manager - Treasury

Ms. Rashika Daniel

Senior Manager - Compliance

Mr. Sugeeshwara Gunasekara

Senior Manager - Sarvodaya Society Coordination

Mr. Manjula Kumarasinghe

Senior Manager - Credit Administration

Mr. Nipuna Fernando

Senior Manager - IT Operations

Mr. Chaminda Niroshana

Senior Manager - Operation

Ms. Indika Gayathri

Manager - Marketing

Mr. Jayashan Niroshan

Manager - Risk Management

▪ Previous experience ▪ Senior Assistant General Manager at Orient Finance PLC ▪ Marketing Manager at the Merchant Bank of Sri Lanka & Finance PLC ▪ Educational Qualifications ▪ A Bachelor’s Degree in Business Management (specialization in Accountancy) from the University of Kelaniya ▪ A MBA from the Postgraduate Institute of Management (PIM), University of Sri Jayewardenepura

14

New Initiatives and the Way Forward

Digital Transformation Plan Aspiring to Empower a Nation

Sri Lanka’s Digital Landscape

SDF Smart Village App • SDF’s current digital platforms will be further enhanced to make SDF a fully-fledged digital entity with seamless digital connectivity between clients and SDF offices • Furthermore, this App is aimed at connecting village entrepreneurs to the market place. In this chain of economic value addition, Sarvodaya’s deeply rooted village societies, the village based transport system, and the energy and enthusiasm of village youth will be the pillars on which this platform will be built

10.10 Mn Internet users in Sri Lanka increased by 399,000 (+4.1%) between 2019 and 2020

31.80 Mn

• Through this SDF will connect village entrepreneurs with International markets in the future • This will be a part of the ongoing commitment to develop and unfold a vibrant & shared ecosystem encompassing the rural villages of Sri Lanka.“SDF Smart Village App” will disrupt numerous industries and redefine the fundamentals of employment

Internet users in Sri Lanka in January 2020 with a 47% penetration

Mobile connections in Sri Lanka increased by 2.20 million (+7.5%) between January 2019 and January 2020

mobile connections in Sri Lanka in January 2020, equivalent to 149% of the total population

15

Striving to Provide Solutions that Go Beyond Finance

Coexist Sri Lanka

“Nena Diriya” Micro Loans

Coexist strives to create a meaningful dialogue to promote and create awareness of coexistence among all members of the community.

Events organized by Coexist to create a movement to inspire people and communities is good reflection of the social change coexist endeavors as an important foundation of SDF.

SDF stepped forward to provide students whose education had been hampered or stalled by Covid-19 the means to acquire their own laptop by launching the “Nena Diriya” Micro Leasing Loan. Nena Diriya offers low interest rates and attractive benefits for students of any age group to acquire a laptop for their studies.

16

Product Portfolio: Lending a Hand at Every Step The product range has continuously evolved in line with changing customer needs and to support the growth and development of its clientele Micro Loans Provides financial support for personal needs and to micro-scale entrepreneurs. SDF continues its pioneering micro-finance services in Sri Lanka through this core product

SME Loans SME facilities are offered in the forms of term loans, short-term loans and revolving loans to facilitate the financial needs of small and medium scale enterprises

Society Loans Provides bulk loans to Sarvodaya Societies (SSS) for onward lending to their individual members.

This product assists in uplifting the lives of rural low-income customers who are members of the SSS

Asset-Backed Loans Loans are granted against Fixed Deposits or Gold Deposits at attractive rates to facilitate urgent financial requirements of deposits holders

Leasing Provider of Finance Leases for income generating assets that provide easy or seasonal/payment schemes and fast and friendly service through island wide branch network

Deposits Products SDF offers a range of deposits products including general savings accounts, children's’ savings accounts, fixed deposits and fixed saver accounts

As per the philosophy of the Sarvodaya Movement, SDF does not provide its financial services to any entity involved in illegal activities or the provision of tobacco, alcohol, gambling services, narcotics or any products and services harmful to human health or the environment

17

Case Study: Empowering Rural Entrepreneurs throughout their Lifecycle The story of Mr. S. L. M. Silva, “Kos Mama” The journey of “Kos Mama” has been adapted to demonstrate SDF’s unique capability to support its clientele as they grow in economic stature and to also be the trusted hand that can provide the non financial support they need to make a leap in their business ventures

3. Customised SME Lending Facilities for imported Machinery and Product Development, Leasing Facilities for Transportation 2. Microfinance Facilities to get his Jackfruit (“Kos”) business off the ground

1. Obtained primary business education through Sarvodaya Society training programs

4. Providing support to the business and personal finances of Kos Mama through the toughest of economic pressures

5. Continuing to cater to all financial requirements of the business as he attempts to make the leap from a local market focused SME to Exporter

18

Empowering Underserved Village Entrepreneurs 135,093 Customers

Facilitating the progression of rural entrepreneurs through numerous measures aimed at improving financial literacy Strengthening relationships by educating and catering to the needs of the hour

57% 43%

Exemplified by SDFs Fluid Leasing Portfolio

78% of loan portfolio originates from outside Western Province

Aug-21 31% 40%

Mar-21

50%

3% 10%

22%

34%

3% 5% 16%

12%

21%

11%

9%

Agriculture & Fishing Transport

10%

10%

Manufacturing Other

13%

Western Province Central Province Uva Province Eastern Province Northern Province

Southern Province North Central Province Sabaragamuwa Province North Western Province

Increased focus on community based Agri Leasing which carries a 0.4% NPL

Ratio 19

Portfolio Catered to the Evolving Needs of its Clientele Evolving Portfolio

4% 14%

2021

15%

9%

2028 5% 8%

20%

Shift in Portfolio

20%

8%

36%

50%

11%

Microfinancing

Leases

Asset Backed

SME Lending

Growing Disbursements at a 6 Year CAGR of 24% 25 20.7 18.4

20

Successfully transformed its portfolio from FY19 to FY21 to better support its clientele through the pandemic

Housing Loans

The increase in exposure to community based lending is as a result of the growth in economic stature of its target client base Society Loans

Disbursements During Lockdown

208 Mn May 2021

Supporting SMEs in their efforts to take advantage of the import restrictions and export focus to grow and capture the market

LKR Bn

16.2 13.8

15 10.9 10 5

8.0 3.7

4.4

711 Mn July 2021

5.8

445 Mn August 2021

0

SDF has sustained healthy monthly disbursements through multiple lockdowns and has also witnessed surges in months without any restrictions

FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 Historical disbursements

20

Funding SDF’s Rapid Expansion Steady Progression to its Targeted Long Term Funding Mix

25

28%

21%

30%

32% LKR Bn

24%

60% 40%

19.5

20

100% 80%

Driving Deposits at 6 year CAGR of 25%

76%

72%

79%

70%

68%

FY24

FY28

20%

15

12.5

10 5

8.0 4.9

4.4

FY20

FY21

5.2

0

0% FY20

FY21 Deposits

FY22 Borrowings

Savings Deposits 27%

FY22

Leveraging on the Sarvodaya Network to further increase its penetration and boost deposits

Current Deposit Composition

FY24

FY26

FY28

Gross Deposits

Establishing itself as a One Stop Financial Services Hub for the rural economy

Striving to nurture the habit of saving in every rural household with deposits for every age group Fixed Deposits 73% Historical figures

21

Strategic Growth Drive to Yield Impressive Financial Performance Rapidly Expanding Book 40

1.4

35

1.2

25

1.0

150%

0.8

100%

20

x

LKR Bn

30

200%

0.6

15 10 5 0 FY20

FY21

FY22

FY23

FY24

FY25

NAVPS (LHS)

FY26

FY27

Continuing to Enhance Credit Quality through Aggressive Growth Phase

FY20

FY21

FY22

15%

0.4

10%

0.2

5%

0.0

0%

FY28

FY23

FY24

FY25

FY26

FY27

FY28

FY26

FY27

FY28

Loan to Deposit Ratio

FY20

FY21

FY22

FY23

PBV (RHS)

FY24

FY25

Gross NPL Ratio

Yielding Growing Returns to Shareholders

Improving Operational Efficiency to Boost Profitability

9.0

25%

8.0

70%

20%

7.0

60%

6.0

LKR

50% 40% 30%

15%

5.0 4.0

10%

3.0

20%

2.0

10%

5%

1.0

0% FY20

FY21

FY22

NIM Historical figures

FY23

FY24

Net Profit Margin

FY25

FY26

FY27

Cost to Income

FY28

0.0

0% FY20

FY21

FY22

EPS (LHS)

FY23

FY24

FY25

Dividend Yiield

FY26 ROA

FY27

FY28 ROE

EPS has been calculated against the weighted average number of shares for each year 22

Striving to Outperform the NBFI Sector Superior YoY Asset Growth 35%

Standing Out from its Peers by Improving its NPL Ratios through the Pandemic 14%

30%

12%

25%

10%

20%

8%

15%

6%

10%

4%

5%

2%

0% -5%

0% 2017

2018

2019 SDF

2020

2021

2017

2018

NBFI Sector

2019 SDF

Consistently Maintaining Above Average NIMs 18%

2020

2021

NBFI Sector

Steadily Improving ROEs against the Trend 25%

16% 14%

20%

12% 15%

10% 8%

10%

6% 4%

5%

2% 0% 2017

2018

2019 SDF

NBFI Sector

2020

2021

0% 2017 -5%

2018

2019 SDF

2020

2021

NBFI Sector

23

Forecast Financials & Valuation

Forecast Financial Statements Statement of Profit and Loss (LKR Mn)

FY20

FY21

FY22F

FY23F

FY24F

FY25F

FY26F

FY27F

FY28F

Interest Income

1,682

1,585

1,778

2,143

2,769

3,730

4,613

5,704

6,431

Interest Expenses

(750)

(623)

(606)

(778)

(1,195)

(1,768)

(2,293)

(2,766)

(3,155)

Net Interest Income

932

961

1,172

1,365

1,573

1,962

2,320

2,938

3,276

Net Operating Income

933

1,060

1,139

1,331

1,581

1,951

2,330

2,947

3,341

Operating Profit Before Tax on FS

232

356

363

494

654

906

1,207

1,649

1,956

Profit After Taxes

102

183

204

284

390

558

709

982

1,172

Statement of Financial Position (LKR Mn)

FY20

FY21

FY22F

FY23F

FY24F

FY25F

FY26F

FY27F

FY28F

Loans and Leases

6,934

7,907

8,525

10,089

14,545

19,024

23,976

27,971

32,537

73

131

893

468

87

89

103

134

171

Other Assets

1,208

999

1,203

1,314

1,508

1,744

2,025

2,347

2,757

Total Assets

8,215

9,037

10,622

11,871

16,141

20,857

26,104

30,452

35,466

Due to Banks and Other Institutions

1,595

1,730

1,397

1,489

3,557

5,933

8,234

8,852

9,247

Due to Customers

5,102

4,552

5,367

6,334

8,234

10,292

12,865

16,081

20,102

Other Liabilities

323

574

523

502

511

514

532

554

567

Stated Capital

890

1,694

2,694

2,694

2,694

2,694

2,694

2,694

2,694

Retained Earnings

195

327

469

668

941

1,192

1,511

1,953

2,481

Reserves

110

161

171

185

204

232

268

317

375

8,215

9,037

10,622

11,871

16,141

20,857

26,104

30,452

35,466

Cash and Cash Equivalents

Total Liabilities and Shareholder Funds

25

Precedent Transaction LKR 806 Mn Raised

x1.24

LKR 22/-

Transaction PBV Multiple

Per Share

SDF was able to successfully conclude a Share Issuance in FY21 across 8 tranches by bringing in over 1200 new shareholders

76%

Sarvodaya Linked Entities

A majority of the individuals that participated in the Share Issuance were external investors, highlighting the widespread acceptance of its unique value proposition

24%

Individuals

1.03x IPO priced at a 17% discount to the Share Issue Transaction PBV

IPO PBV vs

1.24x Share Issue Transaction PBV

26

SDF vs Diversified Financials Sector Diversified Financials Sector • SDF will be categorized under the Diversified Financials Sector, as per the Global Industry Classification Standard (GICS) used by the CSE • All listed NBFIs in the CSE are categorized under this sector

The IPO Price of LKR 22/- per share is at a significant discount to the valuations of the broader peer group

Multiple

SDF

Diversified Financials Sector

Discount

PER

11.02

15.69

30%

PBV

1.03

1.93

47%

Note: Company multiples based on TTM financials as at August 31, 2021 against most recent available (October 8, 2021) sector multiples 27

Priced with a Generous IPO Discount Residual Income Valuation

Peer PBV Based Valuation

Valuation

LKR Mn

Present Value of Residual Income

398.2

Valuation

LKR

Average Peer Multiple

1.22

Book Value of Equity as at June 30, 2021

2,216.0

NAVPS as at August 31, 2021

21.28

Pre-Money Valuation of Equity

2,614.1

Peer PBV Based Per Share Valuation

25.96

Equity Value per Share (LKR)

25.10

Dividend Policy

Weighted Average Valuation Weightage

Per Share Valuation (LKR)

Upside on Offer Price

Residual Income

30%

25.10

14%

Price to Book (PBV)

30%

25.96

18%

Precedent Transaction PBV

40%

26.43

20%

25.89

18%

Valuation Method

Weighted Average Valuation

SDF intends to maintain a Dividend Payout Ratio between 25% to 40% as it expands its portfolio which will result in Dividend Yields that grow from 2% to over 10% during the forecast window

28

Why SDF? LOYALTY INSPIRED BY THE SARVODAYA BRAND

5,400+ Captive customer Legally Independent Village Societies

base

135,093 Customers

Society driven lending and word of mouth marketing practices allow SDF to reach a widespread network of diligent borrowers.

COMMITED TO DEVELOPMENT

55%

0.4%

of disbursements in FY2021 were to the Agriculture sector

NPL

SURPASSING PEERS

Diverse product portfolio focussed on growing side by side with its clientele ensuring the customer remains with SDF even when they succeed and develop

Unique capability to unlock value by taking Digital financial solutions deep into the rural economy

Spotlight on empowering village entrepreneurs

of loan portfolio originating from outside Western Province

Diverse customer base supported through every step on their path to independence, fulfillment and success

NPL

(in July 2021) vs.

Agriculture Leasing 13.04% NBFI Industry Portfolio (last published quarter) SDF remains true to its brand and is committed to developing the lives of the rural masses, for which they enjoy the gratitude and loyalty of this segment.

Further, despite serving a high-risk clientele, community-based lending allows for better credit evaluation and collections.

DIVERSE PORTFOLIO: PRODUCT AND CUSTOMER

78%

9.85%

Fastest Growing Development Finance Company Sri Lanka 2021

Global Banking and Finance Review

The First Development Finance Company in Sri Lanka Focus on the Underserved and Underfinanced rural economies

29

Annexures

Recognition of Dr. A T Ariyaratne’s Track Record • Dr. A T Ariyaratne has been nominated for the prestigious NOBEL PEACE PRIZE three times for his exceptional contribution to peace and harmony.

• He is also a recipient of the highest Sri Lankan award SRILANKABHIMANYA and Gandhi Peace Award from the Government of India.

Other international awards in recognition of Dr. Ariyaratne’s contribution to humanity 1969

Ramon Magsaysay Award for Community Leadership : Philippines

2005

Special Recognition Award from Mayor of Porto Rico : USA

1982

King Bouduwin International Development Prize : Belgium

2005

1986

Alan Shawn Feinstein World Hunger Award, Brown University : USA

Respect for Humanity Award by Humane Society Initiative : Porto Rico. USA

1990

August Forrel World Temperance Award : Denmark

2005

Global Peace Award Detroit, Michigan : USA

1990

Jamnalal Bajaj Award : India

2006

Acharya Sushil Kumar International Peace Award from University of Toronto : Canada

1992

Niwano Peace Award : Japan

1995

Ilga Memorial Award for Public Service : Korea

2006

Mahatma Gandhi Peace Award to Commemorate 100 years of Satyagraha : South Africa

1996

Hubert Humphrey Award for Promoting Human Rights : USA

2007

1996

Mahatma Gandhi Peace Award : Govt. of India

Special Brotherhood Award American Jewish Distribution Council : USA

1999

Life Time Service Award, USA Asia Foundation

2007

2002

Moraji Desai Award for Promoting Literacy : India

Sustainable Development Philosophy and Values Award James Madison University : USA

2003

Highest Academic Award, Sokai University : Japan

2007

Honorary Award by the Governess of Michigan State : USA

2011

Basawa Shri Award for spreading the concept of Ahimsa : India

2004

Spirit of Detroit Award : Detroit City Council USA 2011

2004

Life Time Award from Novartis Foundation for Sustainable Development : Switzerland

Bukkyo Dendo Kyokai Award from Japan Buddhist Association : Japan

2012

Defender of Peace award from Shanthi Ashram : India

2004

Global Peace Award –Interfaith Council : USA

2004

Washington Good Works Award : USA

2005

Prof. Ramlal Parikh International Award Gujarat Vidyapit : India 31

Partners & Flagship Programmes of the Sarvodaya Movement Sarvodaya Movement’s Partners in Progress

▪ Sarvodaya Development Finance Ltd.

▪ Sarvodaya National Sanga Congress

▪ Sarvodaya Higher Learning Institute

▪ Samodaya Seva

▪ Sarvodaya Suwasetha Sewa Society

▪ Sarvodaya Women’s Movement

▪ Sarvodaya Vishvanikethan Peace Center

▪ Sarvodaya Fusion – ICT4D

▪ Sarvodaya Shanthi Sena – The Youth Peace Brigade

▪ Sarvodaya Economic Enterprise Development Services

▪ Sarvodaya Trust Fund

▪ Sarvodaya Rural Technical Services and Sarvo-tech PVT Ltd

▪ A.T. Ariyaratne Charitable Trust

Flagship Programmes of the Sarvodaya Movement

▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪

Over the last 25 years, at any given time more than 400 orphan children are looked after by Sarvodaya Suwasetha homes PALAMA : Save the Children Program in 7 districts covers 125,000 children providing daily school meals IT Yahamaga serves over 40,000 IT students through 120 centers Holistic approach to motherhood program has been conducted for over 50,000 pregnant ladies Over 150 Village to village – Heart to heart youth exchange camps conducted for over 20 years Over 2,000 SHANTHISENA Youth Empowerment programs conducted for a period of 40 years Prison meditation and mindfulness done over the last 20 years on a monthly basis.

Market oriented dairy projects targeting over 5,000 dairy farmers Disaster risk reduction and resilience trainings in 7 districts Small and Mighty Grants program for innovative ideas covering 25 districts Child rights protection, education and leadership building programs conducted for over 5,000 children Suwasetha CBR projects supports over 800 differently abled people Coexist programme to promote sustainable living Deshodaya – to transform the political culture of Sri Lanka

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Top 20 Shareholders

Prior to IPO

Post IPO

Number of Shares

Percentage of Shareholding

Number of Shares

Percentage of Shareholding

Sarvodaya Economic Enterprises Development Services (Gte) Limited

54,000,000

51.85%

54,000,000

36.10%

Gentosha Total Asset Consulting Inc.

13,500,004

12.96%

13,500,004

9.02%

Senthilverl Holding (Pvt) Ltd

6,900,000

6.63%

6,900,000

4.61%

Lanka Jathika Sarvodaya Sharamadana Sangamaya (Inc.)

4,645,000

4.46%

Thalwila Pibidena Sarvodaya Shramadana Society

1,414,000

1.36%

Porathota Sarvodaya Shramadana Society

450,000

0.43%

450,000

0.30%

Kekunawela Sarvodaya Shramadana Society

450,000

0.43%

450,000

0.30%

Mr. W T D Ganegama/ N H Ariyaratne

365,000

0.35%

365,000

0.24%

Kuda Arukgoda Sarvodaya Shramadana Society

300,000

0.29%

300,000

0.20%

Mr C W Perera

230,000

0.22%

230,000

0.15%

Mrs G R De Silva

230,000

0.22%

230,000

0.15%

Ikbal Aboobacker Shammer

227,000

0.22%

227,000

0.15%

Dr. V S Ariyarathne

157,001

0.15%

157,001

0.10%

Mr. Ginige Channa Ajith De Silva

140,000

0.13%

140,000

0.09%

Hodella Wijaya Sarvodaya Shramadana Society

113,000

0.11%

113,000

0.08%

Sumedagama Sumedankara Sarvodaya Shramadana Society

110,000

0.11%

Poramba Sarvodaya Shramadana Society

110,000

0.11%

110,000

0.07%

Mr. Weliwattage Shakila Perera Wijewardena

100,001

0.10%

100,001

0.07%

Mr. Thudugala

100,000

0.10%

100,000

0.07%

Dr. Ahangamage Tudor Ariyaratne/ Mrs. Neetha Dhammachari Ariyaratne

100,000

0.10%

20,500,500

19.69%

20,500,500

13.70%

-

-

45,454,546

30.38%

104,141,506

100.00%

149,596,052

100.00%

Name of the Shareholder

Other Shareholders IPO Shareholders Total

4,645,000 1,414,000

110,000

100,000

3.11% 0.95%

0.07%

0.07%

33

Disclaimer ▪ The information, forecasts, analysis and opinions contained herein have been compiled or arrived at based on information provided by SDF during the due diligence exercise carried out by NDBIB and other publicly available information. Such information has not been independently verified and no guarantee, representation or warranty, expressed or implied is made as to its accuracy, completeness or correctness. Nothing contained in this document is, or shall be relied upon as, a promise or representation by NDBIB. All such information is subject to change without notice and such changes could be due to unforeseen circumstances. This document is for information purposes only and does not purport to be a complete description of the subject matter referenced to herein.

▪ Any estimate, projection, opinion and forecast contained in this Presentation Material involve significant elements of subjective judgment and analysis, which may or may not be correct. No representation is made that any estimate, projection or forecast will be achieved. The actual future events may vary significantly from the estimates, projections or forecasts and each estimate, projection or forecast is based on a number of assumptions and is subject to matters which are outside the control of SDF and NDBIB. ▪ Accordingly, NDBIB shall not be liable for any loss or damage howsoever arising as a result of any person acting or refrain from acting in reliance or any information, forecast analysis and opinion contained herein.

▪ The recipients of this Presentation Material and/or Investors are expected to carry out their own independent evaluations taking into consideration macro-economic variables and other relevant conditions.

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